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Lower interest rates: cheaper real estate loans?
Lower interest rates: cheaper real estate loans?
(France 2)
The European Central Bank announced on Thursday June 6 that it would lower its key rates. This could have an impact on real estate and savings.
With the reduction in key rates from the European Central Bank (ECB), will loans be cheaper? For individuals and businesses, over the past six months, rates have started to fall by 4.45% on average over 20 years in December 2023, they rose to 3.80% in June 2024. These more attractive rates are offered by banks in anticipation of the ECB’s decision.
A real estate agent sees sales starting to rise again. The Livret A rate, like that of the sustainable development booklet, is set at 3% until January 31, 2025. The government could then decide to lower it if inflation stabilizes. The European Central Bank’s decision to cut rates will not be made before September 2024. “The ECB is waiting for two elements: to know where inflation is going (…) and to know what the American Central Bank is going to do, to know if it will lower its rates and when”explains Christopher Dembik, Pictet Am economist. Economists expect one or two new similar declines by the end of 2024.
